DERIVATIVES AND HEDGING (Tables)

6 Months Ended

Apr. 28, 2013

Schedule of fair values of derivative instruments

	Location on Consolidated	Fair Value (1)
	Statements of Financial Position	April 28, 2013			October 28, 2012
Asset Derivatives:
Derivatives Designated as Hedges:
Commodity contracts	Other current assets	$	(7,909	)	$	7,483

Derivatives Not Designated as Hedges:
Commodity contracts	Other current assets	(739		)	—

Total Asset Derivatives		$	(8,648	)	$	7,483

(1) Amounts represent the gross fair value of derivative assets and liabilities. The Company nets the derivative assets and liabilities for each of its hedging programs, including cash collateral, when a master netting arrangement exists between the Company and the counterparty to the derivative contract. The amount or timing of cash collateral balances may impact the classification of the derivative in the Consolidated Statement of Financial Position. See Note J - Fair Value Measurements for a discussion of these net amounts as reported in the Consolidated Statements of Financial Position.

Schedule of gains or losses (before tax) related to derivative instruments

Gain/(Loss)
Recognized in
Accumulated Other
Comprehensive
Loss (AOCL)
(Effective Portion) (1)

Location on

Gain/(Loss)
Reclassified from
AOCL into Earnings
(Effective Portion) (1)

Gain/(Loss)
Recognized in
Earnings (Ineffective
Portion) (2) (3)

Three Months Ended

Consolidated

Three Months Ended

Cash Flow Hedges:

April 28,
2013

April 29,
2012

Statements
of Operations

April 28,
2013

April 29,
2012

April 28,
2013

April 29,
2012

Commodity contracts

(8,378

)

(4,843

)

Cost of products sold

2,156

3,751

(392

)

—

Location on

Gain/(Loss)
Recognized in Earnings
(Effective Portion) (4)

Gain/(Loss)
Recognized in
Earnings (Ineffective
Portion) (2) (5)

Consolidated

Three Months Ended

Fair Value Hedges:

Statements
of Operations

April 28,
2013

April 29,
2012

April 28,
2013

April 29,
2012

Commodity contracts

Cost of products sold

3,628

2,695

135

Location on

Gain/(Loss)
Recognized
in Earnings

Consolidated

Three Months Ended

Derivatives Not
Designated as Hedges:

Statements
of Operations

April 28,
2013

April 29,
2012

Commodity contracts

Cost of products sold

351

Gain/(Loss)
Recognized in
Accumulated Other
Comprehensive
Loss (AOCL)
(Effective Portion) (1)

Location on

Gain/(Loss)
Reclassified from
AOCL into Earnings
(Effective Portion) (1)

Gain/(Loss)
Recognized in
Earnings (Ineffective
Portion) (2) (3)

Six Months Ended

Consolidated

Six Months Ended

April 28,

April 29,

Statements

April 28,

April 29,

April 28,

April 29,

Cash Flow Hedges:

2013

2012

of Operations

2013

2012

2013

2012

Commodity contracts

(12,469

)

(12,085

)

Cost of products sold

8,986

14,641

(226

)

—

Location on

Gain/(Loss)
Recognized in Earnings
(Effective Portion) (4)

Gain/(Loss)
Recognized in
Earnings (Ineffective
Portion) (2) (5)

Consolidated

Six Months Ended

Statements

April 28,

April 29,

April 28,

April 29,

Fair Value Hedges:

of Operations

2013

2012

2013

2012

Commodity contracts

Cost of products sold

2,542

5,349

Location on

Gain/(Loss)
Recognized
in Earnings

Consolidated

Six Months Ended

Derivatives Not

Statements

April 28,

April 29,

Designated as Hedges:

of Operations

2013

2012

Commodity contracts

Cost of products sold

(733

)

(1)	Amounts represent gains or losses in AOCL before tax. See the Consolidated Statements of Comprehensive Income for the after tax impact of these gains or losses on net earnings.
(2)	There were no gains or losses excluded from the assessment of hedge effectiveness during the second quarter or first six months of fiscal years 2013 and 2012.
(3)	There were no gains or losses resulting from the discontinuance of cash flow hedges during the second quarter or first six months of fiscal years 2013 and 2012.
(4)	Amounts represent (losses) gains on commodity contracts designated as fair value hedges that were closed during the second quarter or first six months of fiscal years 2013 and 2012, which were offset by a corresponding gain or loss on the underlying hedged purchase commitment. Additional gains or losses related to changes in the fair value of open commodity contracts, along with the offsetting gain or loss on the hedged purchase commitment, are also marked-to-market through earnings with no impact on a net basis.
(5)	There were no gains or losses recognized as a result of a hedged firm commitment no longer qualifying as a fair value hedge during the second quarter or first six months of fiscal years 2013 and 2012.

Derivatives not designated as hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	April 28, 2013	October 28, 2012
Soybean meal	6,700 tons	—

Cash Flow Hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	April 28, 2013	October 28, 2012
Corn	15.9 million bushels	12.0 million bushels

Fair Value Hedges

Derivatives and hedging

Schedule of outstanding commodity futures contracts

	Volume
Commodity	April 28, 2013	October 28, 2012
Corn	9.5 million bushels	8.0 million bushels
Lean hogs	0.7 million cwt	0.9 million cwt

- Definition

Tabular disclosure of the location and amount of gains and losses reported in the statement of financial performance, or when applicable, the statement of financial position. For example, (a) gains and losses recognized in the income statement on derivative instruments designated and qualifying as hedging instruments in fair value hedges and related hedged items designated and qualifying in fair value hedges and (b) gains and losses initially recognized in other comprehensive income on derivative instruments designated and qualifying as cash flow hedges.

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- Definition

Tabular disclosure of the location and fair value amounts of derivative instruments (and nonderivative instruments that are designated and qualify as hedging instruments) reported in the statement of financial position.

+ References+ Details